Samsara Q3 Earnings Show Profitability, Slowing Guidance
Samsara Q3 earnings showed the company's first GAAP profit on Dec. 4, 2025, with 29% ARR growth but guidance slowed and muted near-term stock reaction.
KEY TAKEAWAYS
- Samsara reported its first quarter of GAAP profitability, marking a milestone for profitable growth.
- Q3 revenue and ARR grew 29% to about $416 million and $1.75 billion.
- Guidance implied Q4 revenue growth near 22% and FY26 revenue around 28%, signaling slower expansion.
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Samsara Inc. (IOT) reported its first quarter of GAAP profitability in Q3 earnings disclosed on Dec. 4, 2025, even as management set Q4 and full-year revenue guidance signaling a slowdown in growth, shifting investor focus to the durability of its expansion.
Quarter Results and Profitability
For the quarter ended Nov. 1, 2025, Samsara said revenue rose 29% year over year to about $416 million. Ending annual recurring revenue (ARR) reached roughly $1.75 billion, also up 29%, driven by net new ARR of about $105 million, which increased in the mid-20% range.
The company reported positive GAAP operating income for the first time, with a non-GAAP operating margin in the mid-teens percent. CEO Sanjit Biswas described the quarter as “another strong quarter of durable and efficient growth.”
Investor materials highlighted customer momentum, noting a quarterly record addition of approximately 219 customers with at least $100,000 in ARR and 17 customers with at least $1 million in ARR, tying a quarterly record. The cohort of customers with $1 million or more in ARR now numbers in the mid-hundreds.
Guidance and Outlook
Samsara guided Q4 FY26 revenue to about $421 million to $423 million, implying roughly 22% year-over-year growth as reported and about 21% in constant currency. The company forecast a non-GAAP operating margin near 16% and non-GAAP diluted EPS between $0.12 and $0.13.
For full-year FY26, Samsara projected revenue around $1.6 billion, implying about 28% growth year over year. It expects a non-GAAP operating margin near 16% and non-GAAP EPS between $0.50 and $0.51. Management described the full-year revenue guidance as modestly above prevailing Street expectations, noting a small positive constant-currency effect in Q4 and a neutral impact for the full year. The company reiterated its focus on efficient growth and expansion with large-enterprise customers.
Samsara filed its Q3 results and related investor materials with the U.S. Securities and Exchange Commission on Form 8-K dated Dec. 4, 2025, covering the period ended Nov. 1, 2025. The filing included the earnings press release and investor materials and disclosed no mergers, acquisitions, regulatory clearances, or termination fees related to the results.
The combination of the first GAAP-profitable quarter and revenue guidance implying a slowdown to low-20s to upper-20s growth framed a beat-and-in-line setup. Investor attention now centers on whether the company’s ARR growth and large-customer momentum can sustain a higher growth rate beyond FY26.
